Moneyfarm Raises £40 Million in Series B Funding Round to Drive Next Evolution in Digital Advice
Moneyfarm, the digital wealth manager that brings investment advice to investors at all stages in life, today announced an investment round of £40 million*, the largest funding round by a European digital wealth manager to date. The company, which launched a personal pension (SIPP) in March this year, will use the capital to fuel growth, including the launch of more personalised and innovative solutions and the expansion of the investment strategy.
The round was led by Allianz Asset Management*, the investment arm of global insurer Allianz, which first invested in Moneyfarm in September 2016. VC firm Endeavor Catalyst and Italian finance firm Fondazione di Sardegna joined as new investors, with further funding from existing backers United Ventures and Cabot Square Capital.* This investment places the company in a strong position to scale. The combination of VC and private equity funding, alongside a strategic investor that has already worked with the company, provides Moneyfarm with a powerful blend of expertise to help the company realise its mission.
“Moneyfarm’s aim is to help individuals better manage their money and increase their wealth to reach their goals,” said Giovanni Daprà, CEO and Co-Founder of Moneyfarm. “We firmly believe that efficient investment management has to be coupled with clear investment advice to achieve the best outcome for our customers over the long term. This is where we see the real value added from digital investments,” he added.
“Over the last few years, we’ve grown rapidly to become one of the largest digital wealth managers in Europe and one of the few to be successfully operating at scale in more than one country. We now have over 27,000 active investors,” said Giovanni. “Today marks an exciting milestone for Moneyfarm as we look to expand our customer base through a focus on greater personalisation of the investment advice we give to help support and guide customers along their wealth journey.”
Moneyfarm is one of the few European digital wealth managers to provide regulated investment advice alongside a cost-efficient investment proposition, and will be exploring the expansion of the product suite in the future. The company’s assets under management has grown by over 50% to £400 million over the last nine months, all of which has been accumulated by going directly to the retail market.
When customers register with Moneyfarm they’re provided with an investor profile. When this is combined with their investment time horizon and the amount they are investing against their current wealth, the company’s algorithm recommends a portfolio that best fits their needs. Moneyfarm has always taken a hybrid approach to the entire investment journey, blending digital investment advice with human investment decision making, and consultants are available on the phone to discuss the advice and portfolio performance.
Giovanni added: “This capital will help bolster our product and investment advice offering as we explore integrating Goal-Based Investments. Adding an additional layer of personalisation means that individuals and families will be allocated portfolios that help them achieve their financial dreams, whether it’s a child’s higher-education or building a retirement nest-egg. We’re excited about incorporating more data points into the investment advice process so investments are catered to households as well as individuals’ investment needs.
“We’re thrilled to have this further backing from Allianz Asset Management, and look forward to continue working with this valued partner. They bring years of experience to the table and their deep understanding of fund management will ultimately benefit our customers.”
“We can make our expertise in active investment management and risk-optimisation available to new client segments by combining it with Moneyfarm’s digital wealth management know how,” said Thorsten Heymann, Global Head of Strategy, Allianz Global Investors. “Allianz’s investment in Moneyfarm increases our exposure to the rapidly growing market for digitally-enabled direct investment solutions.”
James Clark, Partner at Cabot Square Capital added “We are proud to be able to continue to support Moneyfarm in the drive for further technology-led innovation in the asset management arena. Since our initial investment, the company’s AUM and customer base has grown by more than 700%. But more importantly, the team at Moneyfarm has built a leading edge digital platform that provides high quality investment services and advice at an affordable cost. We look forward to partnering with United Ventures and Allianz Asset Management to help take Moneyfarm to the next level.”
Notes to Editor
*Following today’s announcement, Moneyfarm have secured close to £60 million in capital.
**Allianz Asset Management’s investment is subject to the regulatory approval process, which we expect to be complete by the start of Q3 2018.
***FT Partners served as the exclusive strategic and financial advisor to Moneyfarm on their Series B.
Moneyfarm is a digital wealth manager that provides a unique combination of simple investment advice and discretionary management to help people grow their wealth over time. First launched in 2012 and headquartered in the UK, it simplifies investments and offers advice on diversified portfolios to deliver sustainable growth through a range of asset classes.
Operating through an online platform, Moneyfarm’s approach to investment combines human empathy and financial expertise with the efficiency of technology to deliver cost-effective advice and investment solutions to every user.
Regulated by the FCA, it is a fast growth company with more than 27,000 active investors and is well backed having secured close to £60 million in capital. The company is led by co-founders Paolo Galvani and Giovanni Daprà. For more information, please see www.moneyfarm.com.